By cryptoadmin Despite the Fed's expected 25 basis point rate cut, Bitcoin and altcoins experienced a decline. With decreased risk appetite in the cryptocurrency markets, Bitcoin retreated towards $90,000.
A pullback following a brief surge above $94,500 on Tuesday caused a short squeeze in Bitcoin, and it failed to break the resistance that has been limiting BTC for much of the past three weeks. This rejection sent BTC back to the middle of its range, which it has maintained for a month.
At this point, expectations of a Christmas rally for Bitcoin have also been postponed.
According to the data, expectations for a year-end Christmas rally in the Bitcoin options market have weakened, and major bullish bets have shifted to the first quarter of 2026.
Accordingly, Bitcoin options traders are lowering their expectations for a Santa Claus rally and focusing on the first quarter of 2026 for an uptrend.
At this point, options traders are targeting Bitcoin reaching price levels between $130,000 and $180,000 in the first quarter of 2026.
Derive research head Sean Dawson said, “There's about a 24% chance Bitcoin will stabilize above $100,000 this year.”
Experts cite year-end liquidity depletion and decreased volatility as the main reasons why a major Christmas rally is unlikely in the coming weeks.
Adam Chu, senior analyst at GreeksLive, stated, “The year-end closing period is the least liquid period,” adding that market activity is limited towards the end of the year and it is difficult for short-term upward momentum to develop.
*This is not investment advice.